Welcome to the most underrated lesson in real estate.

You’re not just buying a duplex - you’re starting a business.
And every business needs a Profit & Loss Statement.
Today, I’ll show you how to build yours - in 15 minutes - so lenders love you, and you never get denied.

WHY IT MATTERS

If you can’t track your own money, how will you track theirs? I had a student - $80k W-2, 700 credit - denied.
Why? No P&L. Bank said: ‘You live paycheck to paycheck you don’t even have the funds available for 5% down.’
6 months later - P&L fixed, savings grew → $210k loan approved.

TRACKING YOUR OWN P&L

Option 1: Build your own P&L

Open Google Sheets or Excel

STEP 1: INCOME

W-2: $5,500/mo
Side hustle: $800/mo
Total Income: $6,300/mo

STEP 2: EXPENSES

Rent: $1,200
Car: $420
Food: $600
Subscriptions: $180
Total Expenses: $2,400/mo

STEP 3: PROFIT
→ $6,300 – $2,400 = $3,900/mo profit

STEP 4: FUTURE DUPLEX

Mortgage: $1,900
Expenses: $800
Rent: $2,000
→ +$300/mo cashflow

LENDER SEES: ‘This guy has $3,900/mo buffer + 30k in the bank - duplex won’t break him.’”

Option 2: Use an online tool (My favorite way to track my P&L)

Choose between the multiple apps online that allow you to connect your bank account and see your monthly income and expenses.

My Favorites:

Rocket Money
Intuit
GoodBudget

3 RULES TO WIN

Rule 1: Track every dollar for 90 days.
Rule 2: Cut one dumb expense — I canceled $97/mo gym.
Rule 3: Use Separate accounts —
→ Personal (W2, Food, clothes, car, etc.)
→ Duplex (Rent Income, Maintenance repairs, Mortgage Payments, etc)

One property? Keep it simple.
Add a second checking account at your current bank (or your lender’s bank) — name it “Duplex Fund”.
This makes bookkeeping a breeze: rent in, mortgage + expenses out, one statement.

ACTION #4: Personal P&L tool

Today, set up your P&L in google sheets or download a budget app like Rocket Money and track your monthly P&L.
Run 30-day P&L → Screenshot your monthly profit

Want an LLC? Pause.
Talk to your lender, insurance agent, and real estate attorney first.
LLCs add liability protection, but can block FHA 5% down loans and raise insurance rates. Talk to your lender, insurance agent, and a real estate attorney first!
I will talk in Module 7 about umbrella insurance that could be useful for personal liability - it’s what I used before I created my LLC.

Lesson 3 - Profit & Loss - Run Your Life Like a Business